Ukraine’s central bank official says there are too much regulators in the country trying to oversee the cryptocurrency industry, urges to weaken control.

Ukraine’s central bank official believes that overregulation is harmful to the crypto sector, urges government to ease control

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Overregulation in Ukraine is reportedly preventing the cryptocurrency industry from evolving in the country. An official of the Ukrainian central bank (NBU) told this to a local crypto news outlet LetKnow Tuesday, Jan. 8.

Mikhail Vidyakin, the director of the strategy and reform department of NBU, believes there are too many institutions in the country that have the authority to regulate cryptocurrencies.

LetKnow has highlighted that there are at least three government organizations in Ukraine that fall under that definition: the NBU, the Ministry of Finance and the National Securities Commission. In order to foster the development of the industry, the number of its potential regulators needs to be reduced, Vidyakin claims.

Moreover, Vidyakin believes that Ukraine needs a more clear regulatory framework for crypto, along with better definitions for the industry. The NBU official further commented that he supports regulations that allow the market to grow and that the banks should be open to interacting with the fintech sector.

As Cointelegraph reported in October last year, the Economic Development and Trade Ministry of Ukraine has already initiated a state policy for the classification and legalization of crypto-related activities. However, the actual legal framework has not yet been introduced by the government.

In September 2018, the parliament of Ukraine proposed a draft bill on cryptocurrency taxation that offered to introduce a five percent tax for individuals and legal entities conducting operations with virtual assets. The draft bill also offered to raise the crypto-related profit tax rate to 18 percent for businesses, starting on Jan. 1, 2024.

In the meanwhile, a working group within the Ukrainian Ministry of Finance is discussing guidelines for crypto taxation.